Anatoly Legkodymov Pleads Guilty to Money Laundering Crimes
Anatoly Legkodymov, the co-founder of Bitzlato, a virtual currency exchange based in Hong Kong, has pleaded guilty to money laundering crimes in a New York court. The U.S. Attorney’s Office for the Eastern District of New York confirmed this in a statement. Legkodymov appeared in a Brooklyn courtroom before U.S. District Judge Eric Vitaliano for a “criminal cause for pleading.”
Bitzlato’s Role as an Open Turnstile for Criminals
According to United States Attorney Breon Peace, Legkodymov’s guilty plea affirms that he was fully aware of Bitzlato’s role as an open turnstile for criminals engaging in illicit money transactions. Peace stated that the defendant may have believed his cryptocurrency exchange was a safe haven overseas, but this conviction proves otherwise.
Arrest and Charges
Legkodymov was arrested in Miami in January and charged with transmitting illicit funds. The indictment revealed that Bitzlato had been the largest counterparty of the now-defunct Hydra darknet marketplace, where approximately $700 million worth of cryptocurrency was sent through the exchange.
The indictment also alleges that Bitzlato received over $15 million in ransomware proceeds and that Legkodymov and his team were aware that the exchange was being used by criminals.
Money Laundering Concerns and Arrests
In addition to Legkodymov, several other individuals associated with Bitzlato were arrested in various European countries. This includes former CEO Mikhail Lunev, marketing director Alexander Goncharenko, contractor Pavel Lerner, and an unnamed dev-ops engineer. The Department of the Treasury’s Financial Crimes Enforcement Network labeled Bitzlato a “primary money laundering concern” earlier this year. French authorities also seized Bitzlato’s infrastructure in January.
Hot Take: Bitzlato’s Co-Founder Pleads Guilty to Money Laundering
Anatoly Legkodymov, the co-founder of Bitzlato, has pleaded guilty to money laundering crimes. This conviction exposes Bitzlato’s lax controls over illicit money transactions and its role as a hub for criminal activity. The guilty plea confirms that Legkodymov was fully aware of the exchange’s use by criminals. This case serves as a warning that operating cryptocurrency exchanges without proper regulations can lead to legal consequences. It also highlights the ongoing efforts of law enforcement agencies to crack down on money laundering within the crypto space. The arrest and charges against Legkodymov and other individuals associated with Bitzlato demonstrate the authorities’ commitment to combating illicit activities in the digital currency realm.
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